E-PolyLearning

1. An approach in which the company under-costs it's one product and over-costs at least one product is classified as
a. service-cost across subsidizing
b. product-price cross subsidizing
c. product-cost cross subsidizing
d. product cross subsidizing
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Answer: (c).product-cost cross subsidizing

2. The budgeted total cost in indirect cost pool, is divided by budgeted total quantity of the cost allocation base, is calculated by
a. budgeted direct cost rate
b. budgeted indirect cost rate
c. expected indirect cost rate
d. direct budget percentage
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Answer: (b).budgeted indirect cost rate

3. In an activity based cost system; an activity/unit of work or task with differentiated purposes will be classified as
a. different task
b. purpose cost
c. an activity
d. an allocation cost
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Answer: (c).an activity

4. The costs of all the activities for individual products or services can be called
a. purpose level costs
b. output-unit level costs
c. input-unit level costs
d. activity level costs
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Answer: (b).output-unit level costs

5. In an activity based costing implementation, the product's diverse demand is based on
a. batch size
b. complexity
c. process steps
d. all of above
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Answer: (d).all of above

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